The paper studies indirect network effects in a market composed by two incompatible intermediaries that choose price (short-term issue) in addition to location (long-term issue). The paper first shows that (i) when the network externality is sufficiently weak, only maximum differentiation...

When facilities are built to serve end consumers directly, it is natural that consumer demands are affected by the number of open facilities. Moreover, sometimes a facility becomes more attractive if other facilities around it are built. To capture these factors, in this study we construct a...